Order for $550,000 in RFID Tags, Scanners to Assist Tracking of Infected Animals with Chronic Wasting Disease in Captive Cervid Herds

SO. ST. PAUL, Minn., Oct. 4 -- Digital Angel Corporation (AMEX:DOC) , an advanced technology company in the field of rapid and accurate identification, location tracking and condition monitoring of high-value assets, announced today that it had received another order from the U.S. Department of Agriculture (USDA) for the Company's proprietary RFID (radiofrequency identification) traceability system to help the government's ongoing effort to eradicate Chronic Wasting Disease (CWD) in captive cervids.

The latest order, valued at more than $550,000, covers the purchase of electronic tags and scanners and brings the total value of orders for the programs to more than $750,000. The tags and scanners are designed to identify individual animals in the national captive cervid (deer and elk) population. The Digital Angel system is similar to the one the Company is currently using in the companion pet, livestock, and salmon industries in the U.S., Canada and other parts of the world.

Digital Angel competed for a contract to supply electronic identification devices for the USDA CWD program. The USDA contract was previously announced by Digital Angel in October 2003 but was postponed after competitors protested the award. The protests were overturned by the USDA and Digital Angel received its first order for its RFID system in December 2004.

"We are very pleased to have secured another purchase order from the USDA and to continue working closely with the agency," said Digital Angel Chief Executive Officer Kevin McGrath. "We believe our technology will be useful in this effort to eradicate Chronic Wasting Disease as well as other economically significant diseases. A significant number of our scanning products in 2005 have been acquired by local state, USDA and Canadian government agencies to identify animals for disease monitoring and identification initiatives."

About Chronic Wasting Disease

Chronic wasting disease is a fatal neurological disease found in deer and elk. It belongs to a family of diseases known as transmissible spongiform encephalopathies or prion diseases. The disease attacks the brains of infected deer and elk, causing the animals to become emaciated, display abnormal behavior, lose bodily functions and die. Besides being found in captive deer and elk, the disease has also been found in wild deer and elk in 10 states and two Canadian provinces.

About Digital Angel Corporation

Digital Angel Corporation develops and deploys sensor and communications technologies that enable rapid and accurate identification, location tracking, and condition monitoring of high-value assets. Applications for the Company's products include identification and monitoring of humans, pets, fish and livestock through its patented implantable microchips; location tracking and message monitoring of vehicles and aircraft in remote locations through systems that integrate GPS and geosynchronous satellite communications; and monitoring of asset conditions such as temperature and movement, through advanced miniature sensors.

Digital Angel Corporation is majority-owned by Applied Digital Inc. (NASDAQ:ADSX) . For more information about Digital Angel, please visit www.DigitalAngelCorp.com.